Accelerate and Innovation

Lean Strategies for Startups and Innovative Ideas Fundamentals of Lean Strategies for Business
5 minutes
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Transcript

After we have done the pivoting, we have established a business we have run the business we have step a we have ID we have an idea, we have established a minimum viable product, we have successfully tested it we have tested all the hypothesis is working the growth is there, how do we accelerate So, acceleration is very important explanation is coming into the batches. So, we are doing things batch by batch We are not trying to accelerate in a very fast moment. So, the batch means single piece flow every time we are trying to implement only one time one thing at a time, rather than meet accelerate super fast and we collapse. So, the growth can come from the different ways sustainable growth by word of mouth. It can come from the product usage, the mood, the use, the products are being used, the more highly godis.

You can do paid ads, but that's one time growth and then repeat purchases. So that's the model of what We call sustainable growth these are the sustainable growth, ways of sustainable growth. So, the engines of growth are how we do really, we call how do we grow their work the Indians have different methods. So, one is the sticky method we call it churn rate how much it means that you are asking the customer to stay on the system. So the more the longer they stay on the platform, the longer the higher is their value for example, Facebook, the higher or YouTube, the higher you stay on their platform, the higher is there value they are generating the higher ad revenue if you stick on them, so it's based on the usage, then you have viral so means how many peoples are going to use your system the more people's use your system is the growth will be very fast.

So, industry key the consumer volume may not be very high. However, the usage factor has to be very high in the viral method. The consumer may not be very much they may not come on your product too much, but it has to be viral means it has the customer is going to tell 10 different other people. So, that's called viral coefficient, the measurement is done by coefficient. So, the higher the coefficient the more viral it is and more and the faster it will go. For example, Facebook is both viral and sticky and it paid so is Is there any cost to get a new customer.

So, you have if you are paying new customers, so, how much money that you are able to generate from that particular new customer, if the benefits outweigh the cost your your startup will not go very fast, it will collapse. So the cost of acquiring a new customer has to be lower than the benefit that you can get from them. And then another technology that another technique that we wanted to discuss here is adaptation. How we adapt so means there are you need to ask Five Eyes. So, after every product, there are always uncertainty there are always failures to adapt, adapt means to accept a change and to to accept the uncertainties the failures and change your processes to be able to grow faster or to be able to grow sustainably. So, for that, we need to find the root cause of the problem.

So, how to find the root cause of the problem is, we start with something we call at five buys. So let's say for example, if there was a machine in a factory machine stopped so we will ask the first question why the machine stop? So answer maybe let's say is overload. So okay. So then why why was the reason why was there was overload. So maybe the hearing was not lubricated.

So why bearing was not duplicated, because lubrication problem was not efficient. Why lubrication from was not efficient because the shaft was one that's why shark was one because there was no stranger attached and described Metal metal strap went into shaft was what? So once you start asking why many times at least five times, you will be able to get into the root cause you may get to the root cause maybe after two why's or three why's only, you don't need to go into the five. But the idea is to get to the root cause of the problem that the lowest possible the smallest form of your issue. And then you fix that, so that the problem doesn't happen again and again. So that is called adaptation.

Then we have something called innovation, innovation is always a continuous process. As we said, startups work in uncertain environments. So it means that they always have to continue innovating. So we have to nurture the innovation, to nurture the innovation. We have to provide the resources set allocate the resources for innovation only, and then we create an independent Development Authority. So whoever is in charge of development, he is not support he is not required you should be required to answer the traditional methods of product delivery the value the profit or loss.

If that is the case then the innovation will not happen and the leader has may have some kind of personal stake into the project, then it will be become more successful. So, ultimate objective is to deliver cookies

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